Armenia’s public debt nears $14 billion, finance chief says

Armenia’s public debt in the first half of this year amounted to 5.323 trillion drams in dram equivalent and $13.852 billion in dollar terms, Finance Minister Vahe Hovhannisyan announced.

He made the remarks at a session of the National Assembly’s Standing Committee on Financial-Credit and Budgetary Affairs while presenting the report on the execution of the state budget for the first half of 2025, Caliber.Az reports, citing Armenian media.

“The public debt increased by 4.5% in the first half of 2025, and by 7.9% in dollar terms. The difference between the dram and foreign currency indicators is due to the exchange rate of the dram against the U.S. dollar used for debt conversion — 396.6 at the end of 2024 and 384.3 on June 30, 2025,” Hovhannisyan explained.

In dram terms, the public debt rose by 4.8%, while the Central Bank’s debt decreased by 2.2%.

According to the minister, in nominal terms the public debt amounted to 5.323 trillion drams, or $13.852 billion in dollar equivalent.

He assured that the government’s debt portfolio risk indicators remain within the established benchmarks. The average weighted interest rate in the first half of 2025 compared to the end of 2024 remained unchanged at 7.2%.

Domestic debt continues to exceed external debt, reaching 52%. Domestic debt accounts for 51%, compared to 49% denominated in foreign currency.

By Khagan Isayev